If the world real interest rate is less than the real interest rate that would occur in Canada if there was no trade, what should we expect to happen in the supply and demand for loanable funds graph?
A) the supply curve to shift to the left
B) the demand curve to shift to the right
C) net capital outflow to remain unchanged
D) net capital outflow to decrease

Question

Quizplus · Accepted Answer

The Answer of If the world real interest rate is less than the real interest rate that would occur in Canada if there was no trade, what should we expect to happen in the supply and demand for loanable funds graph?
A) the supply curve to shift to the left
B) the demand curve to shift to the right
C) net capital outflow to remain unchanged
D) net capital outflow to decrease

If the World Real Interest Rate Is Less Than the Real